Reviewing Yellow (YELL) and Its Peers

Yellow (NASDAQ: YELL) is one of 22 public companies in the “Trucking, except local” industry, but how does it compare to its competitors? We will compare Yellow to related businesses based on the strength of its valuation, earnings, dividends, profitability, institutional ownership, analyst recommendations and risk.

Volatility and Risk

Yellow has a beta of 3.23, indicating that its share price is 223% more volatile than the S&P 500. Comparatively, Yellow’s competitors have a beta of 1.56, indicating that their average share price is 56% more volatile than the S&P 500.

Profitability

This table compares Yellow and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Yellow -2.65% N/A -5.64%
Yellow Competitors 5.77% 15.49% 7.39%

Institutional and Insider Ownership

44.7% of Yellow shares are held by institutional investors. Comparatively, 58.3% of shares of all “Trucking, except local” companies are held by institutional investors. 3.7% of Yellow shares are held by company insiders. Comparatively, 20.1% of shares of all “Trucking, except local” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Yellow and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Yellow $4.51 billion -$53.50 million -3.17
Yellow Competitors $2.83 billion $133.83 million 21.14

Yellow has higher revenue, but lower earnings than its competitors. Yellow is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and target prices for Yellow and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yellow 0 1 1 0 2.50
Yellow Competitors 250 1336 1188 42 2.36

Yellow presently has a consensus price target of $13.50, suggesting a potential upside of 110.61%. As a group, “Trucking, except local” companies have a potential downside of 1.68%. Given Yellow’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Yellow is more favorable than its competitors.

Summary

Yellow competitors beat Yellow on 8 of the 13 factors compared.

Yellow Company Profile

Yellow Corporation, through its subsidiaries, provides a range of transportation services primarily in North America. It primarily offers less-than-truckload (LTL) shipments and supply chain solutions. The company provides various services to transport industrial, commercial, and retail goods; next-day ground services; customer-specific logistics solutions, including truckload, residential, and warehouse solutions. It also offers specialized services, such as guaranteed expedited, time-specific delivery, cross-border, coast-to-coast air delivery, exhibit, product return, temperature-sensitive shipment protection, and government material shipment services. In addition, the company provides consolidation and distribution, reverse logistics, and residential white glove services. As of December 31, 2020, it had a fleet of approximately 13,500 tractors comprising 10,400 owned and 3,100 leased tractors; and 41,900 trailers consisting of 29,600 owned and 12,300 leased trailers. The company was formerly known as YRC Worldwide Inc. and changed its name to Yellow Corporation in February 2021. Yellow Corporation was founded in 1924 and is headquartered in Overland Park, Kansas.

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